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Generative Engine Optimization Customer Acquisition Cost (CAC): 2025 Benchmarks

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Geo Cac Tn

Generative Engine Optimization (GEO) was the fastest-growing marketing channel in 2024 and 2025 through Q2. Our research team recently conducted a study on GEO customer acquisition costs. Our data was compiled over an 18-month analysis period (January 2024 – July 2025), and encompassed 127 companies implementing GEO strategies across 15 industries. The results are shared below, segmented by industry. 

Methodology and Data Sources

This analysis draws from First Page Sage’s proprietary client database spanning 127 B2B companies that implemented GEO strategies between January 2024 and July 2025. Our methodology tracked customer acquisition costs specifically attributed to GEO initiatives, including content optimization for AI platforms, structured data implementation, and reputation management components essential for generative engine visibility.

Key limitations: Given GEO’s nascent stage, sample sizes vary by industry (minimum 8 companies per sector). Results reflect early-adopter performance and may normalize as the market matures. All figures represent organic GEO costs, excluding paid advertising on AI platforms.

GEO Customer Acquisition Cost (CAC) by Industry

IndustryGEO CACTraditional SEO CACPremium vs SEOLead Quality ScoreAvg Time to Convert
B2B SaaS$249$205+21.5%8.3/1045 days
IT/Managed Services$391$325+20.3%8.1/1038 days
Construction$255$212+20.3%7.9/1041 days
Manufacturing$796$662+20.2%8.4/1047 days
Healthcare$439$366+19.9%8.7/1053 days
Financial Services$772$644+19.9%8.9/1044 days
Legal Services$699$584+19.7%8.6/1039 days
Real Estate$789$660+19.5%7.8/1031 days
Commercial Insurance$704$590+19.3%8.2/1056 days
Professional Services$542$458+18.3%8.0/1045 days
eCommerce$387$328+18.0%7.6/1011 days
Higher Education$1,014$862+17.6%8.5/1061 days
Technology Consulting$625$532+17.5%8.2/1046 days
Hospitality$423$361+17.2%7.4/1016 days
Non-Profit$298$256+16.4%7.7/1022 days

Key Insights:

  • Our study revealed that GEO delivers an average customer acquisition cost of $559 across all industries, representing a 14.4% cost premium over SEO while generating 27% higher conversion rates and 9.2% higher lead quality. 
  • The B2B SaaS sector demonstrates the lowest GEO CAC at $249, benefiting from AI platforms’ preference for technical, well-structured content. 
  • Conversely, Higher Education shows the highest GEO CAC at $1,014, reflecting longer decision cycles and the need for extensive reputation management in academic markets.

GEO CAC by Company Size and Implementation Model

Our team also segmented the data by company size, and in addition to GEO CAC, noted average monthly GEO investment, CAC Payback period, and lead conversion rate. Further, they broke down GEO CAC by implementation model.

Average GEO CAC by Company Size

Company SizeAverage GEO CACMonthly GEO InvestmentCAC Payback PeriodLead Conversion Rate
Startup (<$1M ARR)$492$2,4003.2 months31%
Small Business ($1M-$10M)$461$4,3504.1 months28%
Mid-Market ($10M-$100M)$602$8,2004.8 months26%
Enterprise (>$100M)$716$12,5005.2 months24%

Key insights

  • Smaller companies achieve more efficient GEO CAC due to agility in content optimization and faster implementation cycles. 
  • Enterprise organizations face higher costs due to complex approval processes and multi-stakeholder content strategies.

Average GEO CAC by Implementation Model

Implementation ModelAverage CACSuccess RateTime to Results
Agency-Managed (Premium)$58187%59 days
Agency-Managed (Standard)$68669%92 days
In-House with Consulting$70168%116 days
In-House Only$94752%203 days

Key Insights:

  • Premium agency-managed implementations show 34% higher success rates despite increased costs, with expert GEO practitioners delivering faster results through proven optimization frameworks.

GEO vs Traditional Digital Marketing Channel CAC Comparison

Our team compared our GEO CAC data against the CACs of other marketing channels in the table below. NOTE: The dataset skews 64% B2B; B2C CACs are significantly smaller.

Marketing ChannelAverage CACLead QualityConversion TimelineLong-term Value
GEO$5598.2/1089 daysHigh
Traditional SEO$6127.8/10127 daysHigh
Email Marketing$6606.9/1045 daysMedium
LinkedIn Advertising$7227.5/1032 daysMedium
Organic Social$7016.2/1067 daysLow
Google Ads (PPC)$7816.8/1028 daysLow
Meta Advertising$5705.9/1035 daysLow

Insights:

  • GEO’s competitive advantage lies in superior lead quality scores and sustainable long-term value, positioning between traditional SEO’s cost-effectiveness and paid advertising’s speed to results.

GEO Customer Acquisition Trends: Evolution of GEO CAC Over Time 2023-2025

Our team analyzed the quarterly CAC of GEO in the table below, tracking the marketing channel’s effectiveness as techniques have evolved.

Time PeriodAverage GEO CACMarket Development StageImplementation Success Rate
Q4 2023$2,134Pioneer Phase43%
Q1 2024$1,223Early Adopter56%
Q2 2024$1,187Market Development68%
Q3 2024$781Growing Adoption74%
Q4 2024$601Mainstream Transition79%
Q1 2025$620Market Establishment83%
Q2 2025$559Optimization Phase85%

Key Insight: 

  • GEO CAC has declined 37.5% from initial levels as methodologies standardized and tool ecosystems matured. This trajectory mirrors early SEO market development patterns, suggesting continued cost optimization as adoption scales.

Conclusions 

Our research team made the following conclusions from studying the data:

  1. GEO represents a fundamental shift in customer acquisition strategy. The technology offers superior lead quality at moderate premium pricing compared to traditional organic channels. The 14.4% CAC premium over SEO delivers higher quality leads at better conversion rates, and with enhanced brand credibility.
  2. Early adopters maintain significant competitive advantages. First-mover benefits will likely diminish as market adoption accelerates. Organizations should prioritize GEO implementation in the coming 2 years, recognizing that AI-powered search will increase in its importance for lead generation and that GEO will be a standard marketing investment in 3-5 years.


Further Reading: 

Evan Bailyn

Evan Bailyn is a best-selling author and award-winning speaker on the subjects of SEO and AI-powered Search. Contact Evan here.